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Maruti Suzuki India posts high profits despite slump

New Delhi, Apr 27 (): Maruti Suzuki India limited (MSIL) in spite of the worst period for the Indian automobile industry, has posted a profit off of Rs 1,147.5 crore for the quarter ending March. This beats the previous highest profit for a quarter of Rs688 crore achieved in 2009-2010.

The company had in 2009-2010 recorded a profit of Rs 688 crore. This last fiscal is the highest profit so far. The largest car maker of India kept up the position with the models Maruti Swift, Maruti Dzire, Maruti ertiga and Maruti Ritz models.

Yet another factor that worked in Maruti Suzuki India was that imports coming from Japan were down and yen was weaker. The company registered a 79 % increase in profits with a 9 % increase in sales. Last year its sales declined 4%.

The company new models the Ertiga, DZire and Swift, demand drove sales figures. The drive to locally procure spare parts cut down the costs of manufacture and thereby increasing the margins. Maruti Suzuki India at the same time increased the price by 1%. The rupee gained against yen. Stock markets response to Maruti Suzuki India was immediate with shares touching an all-time high on hearing of the profits.

Maruti Suzuki India would not be contend with being the market leader for 30 years but would now write new chapters said MD and CEO Kenichi Ayukawa. Holding a 39% share in passenger car market, Outgoing

MD Nakanshi said that the trend seen was that those who could afford big cars bought them but the budget cars found few buyers as these segments were affected by economic slowdown. Seven arms dealing insurance operations of MSIL were merged to bring Rs 200 crore to the parent company.

This year yet another subsidiary, Suzuki powertrain India was merged with parent body and this added to profit of fourth quarter. Maruti dominant position remains unchallenged due to the understanding of the Indian market, it claimed.